Are your recruiting metrics old and tired?
Turnover rate is one of several tired, old, static recruiting metrics applied to staffing and retention that isn’t very effective in a competitive, evolving job market and economy. With its foundation in employee hiring and exit history, it doesn’t reflect a company’s current recruiting needs status and only provides a guesstimate basis for future recruiting needs.
Cost-per-hire is static as well, only looking at the initial cost and not other relevant costs such as the costs of hiring the wrong person. So what should recruiters and employers actually be measuring for the most relevant and meaningful impact on hiring?
Try some crazy sexy recruiting metrics that transform the recruiting process into a strategic tool for competitive edge.
Business Impact Metrics Illustrate True Value
Go beyond the quality of hire metrics and use recruiting metrics that illustrate the impact on the business. These are valuable tools for employers and recruiters alike. Recruiting Metrics that evaluate what percentage of new hires are innovators, assessed by surveying hiring managers, establish a standard for hiring candidates who go beyond the job description to help move the business forward or create extraordinary value.
A project delay metric, calculated by surveying project managers to ask if projects have been delayed by recruiting, reveals number of project delays, project days lost, and cost of project delays due to recruiting. Other business impact metrics include key positions vacancy days that measure how many days key revenue-generating positions are vacant and diversity hires in high-level positions for companies with diversity initiatives.
Predictive Recruiting Metrics are Powerful
Much of traditional recruiting metrics involves looking at cost as it pertains to fees and length of time a position is vacant. But looking at predictive metrics such as an forecasted unemployment rates, the level of recruiting competition from competitors’ hiring or layoffs, and forecasted labor costs allows companies to adjust and plan recruiting for upcoming hiring challenges and opportunities. Used alongside traditional recruiting metrics, predictive metrics provide a powerful strategic steering mechanism that becomes a competitive advantage.
Tactical recruiting metrics build in continuous improvement standards that identify specific areas of recruiting. An offer acceptance rate metric illustrates weakness in the offer process that causes loss of top candidates. Improving acceptance rates saves time and money and avoids losing candidates to the competition. Metrics that track which sources produce the best hires, such as employee referral hires and intern program hires, give recruiters an indication of where to allocate their time sourcing candidates. Recruiting Metrics that record satisfaction with the process, usually by surveying hiring managers, new hires, and applicants, point employers and recruiters to opportunities for improvement. Gauging employer brand strength with various methods such as looking at comments on glassdoor.com or a Google search of the employer and openings also highlights opportunities for improvement.
Why Use Crazy Sexy Metrics?
Crazy sexy recruiting metrics go beyond cost to hire and numbers hired to delve into the true values in the hiring process. They allow recruiters to show company owners and stakeholders how an aspect of the hiring process impacts the business. A recruiting standard that produces new hires who become innovators or identifies the best sources for outstanding candidates who get hired quickly raises the bar. It improves the level of recruiting success, and creates a competitive recruiting edge that builds the company.
Don’t rely solely on traditional time-to-fill and cost-per-hire recruiting metrics. Wildly successful recruiting requires crazy sexy recruiting metrics developed and tweaked to improve specific customer recruitment weaknesses. They take more time and attention than goes into an applicant tracking system or a regular recruiting campaign, but they build bench strength and create competitive advantage.
What metrics have you found most useful?
Andrew Greenberg’s roots in recruiting date back to 1996. He has experience both on the agency-side and corporate-side of the staffing business, with a focus in the financial services space at companies like Bloomberg and UBS. He also has core experience with information technology staffing, and has worked for major software companies such as SAP Business Objects and IBM/Informix Software. To get in touch with Andrew, you can reach him by email or by phone at (800) 797-6160.